Alternatively there are other lenders out there that will give you a loan even without credit or credit history, as long as you provide compensating factors.

The loan is factoring in rent from the tenants and when running your numbers, you need to include vacancies. 

Trust is a huge factor in my opinion.

Again you are looking at exterior factors.

That will be the biggest factor in deciding which investing avenue to take. 

@Daniel D.It’s pretty much the only way of getting business credit , you won’t get it without a LLC & EIN.Its based on personal credit but is a second line of credit, hidden from your FICO , it’s fairly straightforward and can find you $50 to $100k useable funds within a couple of yearsIf you plan to be in real estate for ever, then it’s a no brainer to start building business credit

@Travis Walker I agree with @Simon W. see what you can afford. but to answer your question simply, i was also in debt with student loans, car, etc and i chose to invest in real estate anyway. yes its a risk but if i waited till im debt free id be waiting forever because its always hard to take the leap. with real estate on the side, i paid off my debt a lot faster.

There are some other factors at play though.

Factor 8 percent sellers closing cost in to your planning.

@Tris Wils Have you considered renting out the property for events?